16 Apr Looking to cut costs? Enhance your accounting
For small and medium-sized businesses, saving money is always a priority. And, while things like reducing overheads and minimising unnecessary spend on equipment are often at the top of the agenda when it comes to finding areas ripe for improvement, assessing accounting practices can very often slip under the radar.
However, there’s a reason why the phrase ‘balancing the books’ is often used in relation to saving money and trimming the financial fat. By making your accounting processes more efficient, and by getting the right assistance at the right time, you will be well on the way to not only improving how your business operates, but you’ll be able to boost your bottom line in the process.
The digital accounting revolution
Mention the word ‘accounting’ to the average person on the street, and it’s likely they’ll still associate the role with calculators, stacks of papers and carrier bags full of receipts. However, in the last decade or so, accounting has become far more sophisticated than those tired old cliches would suggest.
According to research carried out by software giants Sage, three out of five SMEs admit to having incorporated digital accounting services into their business. And, because of the time savings associated with using such programs – which subsequently free up employees to tackle other tasks – Sage estimates that these businesses save an average of £17,000 each year when compared to organisations without such systems.
However, despite the clear financial benefits, Sage’s research has shown that almost one in five (18%) of all SMEs in the UK are still using manual accounting methods. The two main reasons behind this are that business owners are either unwilling to adapt to change, or they don’t believe that upgrading their accounting systems can be financially justified.
Of course, such savings can only be accrued if the systems are utilised correctly. That means being adept at inputting data, interpreting findings, and analysing the results to see if there is room for additional cost savings.
If you’re looking for assistance, we’re here to help. We are vastly experienced when it comes to helping businesses introduce new systems, and then giving them the skills and tools necessary to operate them efficiently going forward. Get in touch today, and let’s get you saving.
We look forward to hearing from you.